DCIT, New Delhi V. M/s. Ferrous Infrastructure Pvt. Ltd., Gurgaon

ITA 4688/DEL/2015

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0263 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 16-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA
• Section: 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.4688/DEL/2015 ASSESSMENT YEAR: 2011-12 DCIT CIRCLE 9 (2) NEW DELHI VS FERROUS INFRASTRUCTURE PVT. LTD., VATIKA TOWERS, 1 ST FLOOR, BLOCK-B, GOLF COURSE, SECTOR-54 GURGAON -122002 PAN NO.AAACF9776H (RESPONDENT) APPELLANT BY MS. ANIMA, SR. DR RESPONDENT BY SH. RAJAN SACHDEVA, ADVOCATE DATE OF HEARING: 20/07/2021 DATE OF PRONOUNCEMENT: 20/07/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A)-3, DELHI DATED 11.05.2015 PERTAINING TO A.Y.2011-12. 2 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT T HE CIT(A) ERRED IN DELETING THE ADDITION OF RS.28271269/- MADE BY T HE AO ON ACCOUNT OF DEDUCTION U/S. 80IB (10) OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF REAL ESTATE D EVELOPMENT BUILDING OF HOUSING PROJECT ETC. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO NOTICED THAT THE ASSESSEE HAS CL AIMED THE FOLLOWING YEAR WISE DEDUCTIONS U/S. 80IB FOR THE PR OJECT AT SECTOR- 89, FARIDABAD IN ITS INCOME TAX RETURN :- 4. THE AO NOTICED THAT TILL NOW THE PROJECT IS COMP LETED ONLY UPTO THE EXTENT OF 30.78%. THE AO WAS OF THE OPINI ON THAT FOUR YEARS HAVE SINCE LAPSED AND THE ASSESSEE NEEDS TO C OMPLETE THE PROJECT WITHIN 5 YEARS THE AO ACCORDINGLY FORMED A BELIEF THAT THE 3 CLAIM OF THE DEDUCTION OF THE ASSESSEE EXPIRES AND HENCE NOT ELIGIBLE FOR THE CLAIM OF DEDUCTION U/S. 80IB (10) OF THE ACT. THE AO ACCORDINGLY DISALLOWED THE CLAIM OF DEDUCTION AM OUNTING TO RS.28271269/-. 5. ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A). I T WAS STRONGLY CONTENDED THAT THE ASSESSEE HAS BEEN REGULARLY FOLL OWING THE PERCENTAGE COMPLETION METHOD AND FOR THIS REASON TH E CLAIM OF DEDUCTION U/S.80IB OF THE ACT CANNOT BE DENIED. ST RONG RELIANCE WAS PLACED ON THE CBDT INSTRUCTION NO.4 OF 2009 DAT ED 30.06.2009. RELIANCE WAS PLACED ON SEVERAL JUDICIA L DECISIONS. 6. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS AND THE CBDT INSTRUCTION (SUPRA) AND ALSO THE JUDICIAL DECI SIONS THE CIT(A) CONCLUDED AS UNDER :- 4 7. BEFORE US THE DR STRONGLY SUPPORTED THE FINDINGS OF THE AO BUT COULD NOT POINT OUT ANY ERROR OR INFIRMITY IN T HE FINDINGS OF THE CIT(A) MENTIONED HERE IN ABOVE. 8. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT TH E ASSESSEE HAS BEEN OFFERING INCOME ON PROJECT COMPLETION METHOD. WE FIND THAT THE CIT(A) WHILE ALLOWING THE APPEAL HAS GIVEN A LI BERTY TO THE AO TO DETERMINE THE CORRECT PROFIT UNDER THE PERCENTAG E COMPLETION METHOD AND FURTHER GIVEN THE LIBERTY TO WITHDRAW TH E RELIEF IF 5 SUBSEQUENTLY THE AO FINDS THAT THE ASSESSEE HAS NOT COMPLIED WITH ANY OF THE REQUIREMENTS OF SECTION 80IB (10) O F THE ACT. WE DO NOT FIND ANY ERROR OR INFIRMITY IN SUCH FINDING OF THE CIT(A) WHICH CALLS FOR NO INTERFERENCE. 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 10. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 20.07.2021. SD/- SD/- (K.NARASIMHA CHARY) (N. K. BILLAIYA) JUDICIAL MEMBER ACCO UNTANT MEMBER *NEHA* DATE:-20.07.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 6 DATE OF DICTATION 20.07.2021 DA TE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 20.07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 20.07.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 20.07.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 20.07.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 20.07.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 20.07.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE O N WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER